Microsoft's capex miss hits Nebius, CoreWeave, and IREN shares

Neocloud stocks fell Thursday after Microsoft's lower-than-expected capital expenditures reignited concerns about AI infrastructure expansion and data center capacity delivery. CoreWeave and Nebius dropped about 7% in premarket trading, while IREN lost over 5%. Microsoft reported $45.2 billion in capital expenditures and finance leases for the quarter, up roughly 30% year-over-year but below the $50.7 billion analyst average estimate. The company attributed the shortfall to delayed third-party capacity deliveries, with CFO Amy Hood noting Q2 spending should exceed $50 billion. The selloff reflects broader worries about neocloud financing, with CoreWeave holding about $50 billion in debt and its unsecured bonds trading at distressed levels. Analysts at Oppenheimer defended CoreWeave's balance sheet, while Nebius received a Buy upgrade citing its lower net debt of approximately $2.15 billion.